Banco De Sabadell Sa · BME:SAB
Banco De Sabadell Sa — Banco De Sabadell Sa Ord — Q1 2025 Earnings Presentation
39 slides from Banco De Sabadell Sa's earnings presentation, May 8, 2025
Slide 1: 1Q25 Results
Sabadell 1Q25 Results May 8, 2025
Slide 2: Index
Index 1 1Q25 highlights 2 Financial results 3 Balance sheet 4 Closing remarks
Slide 3: 1Q25 Highlights
Sabadell 1Q25 Highlights
Slide 4: 1Q25 results represent a good start to the year
1Q25 results represent a good start to the year Momentum in commercial Asset quality metrics further activity continues improved Performing loans: +5.0% YoY 14.1% NPL ratio fell by -79bps YoY to 2.67% Customer funds: +6.3% YoY Recurrent Total cost of risk at 35bps (-16bps YoY) RoTE1 15.0% RoTE repor
Slide 5: Growing with lower risk to deliver healthy capital generation in an uncertain environment
Growing with lower risk to deliver healthy capital generation in an uncertain environment Probability of Default evolution by segment Growth strategy in lower risk segments is delivering: Loan growth Probability of Default ex-TSB YoY reduction1 Lower loan yield, lower cost of risk with neutral impac
Slide 6: Loan volumes and customer funds continue to grow at mid-single digit YoY
Loan volumes and customer funds continue to grow at mid-single digit YoY Performing loans across geographies Total customer funds €M €M Mar-25 QoQ YoY Mar-25 QoQ YoY Spain 99,810 +1.6% +5.5% On-balance sheet -0.5% +4.5% 168,751 Constant FX -0.2% +4.3% UK (TSB) -0.5% +2.0% 43,181 47,591 +3.1% +12.9%
Slide 7: Current levels of new lending allow loan book to grow both in individuals and companies
Current levels of new lending allow loan book to grow both in individuals and companies Mortgages Consumer loans €M, quarterly new lending in Spain €M, quarterly new lending in Spain 1,728 1,645 +81 % 692 698 +26 % Var. YoY 552 Var. YoY 908 -5 % +1 % Var. QoQ Var. QoQ 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 S
Slide 8: Payment services remain strong. Savings & investment products increase
Payment services remain strong. Savings & investment products increase Cards Retailer payment services (PoS) Quarterly turnover in Spain (in €M) Quarterly turnover in Spain (in €M) 6,623 +6 % 14,259 13,043 +5 % 5,727 6,060 12,445 Var. YoY Var. YoY -8 % -9 % Var. QoQ Var. QoQ 1Q24 4Q24 1Q25 1Q24 4Q24
Slide 9: Loan growth accelerated further in Spain
Loan growth accelerated further in Spain Performing loans by segment, ex-TSB €bn Mar-25 QoQ YoY Mar-25 QoQ YoY Mortgages 39.3 +1.2% +4.9% Mexico 4.4 +2.7% -8.9% Constant FX +6.3% +0.6% Consumer loans 4.8 +4.2% +20.6% Miami 6.7 -4.4% +19.6% Constant FX -0.5% +19.7% SMEs & Corporates 42.1 +1.4% +4.8%
Slide 10: Performing loan book in TSB remained stable while cost of deposits improved
Performing loan book in TSB remained stable while cost of deposits improved in the quarter Quarterly new mortgage lending TSB performing loans TSB customer deposits £M £bn £bn +12% 1Q25 Var. YoY Mar-25 QoQ YoY Mar-25 QoQ YoY Cost +22% Secured 33.8 +0.4% -0.4% Current 13.8 -0.3% -1.7% -0.07% Var. QoQ
Slide 11: TSB continues improving its profitability and contribution to group
TSB continues improving its profitability and contribution to group TSB standalone P&L and its contribution to Sabadell £M 1Q25 1Q25/4Q24 1Q25/1Q24 1Q25 results aligned with 2025 guidance: NII 261 2.4% 9.4% • Net Interest Income to grow by high Fees & commissions 18 -11.9% -28.0% single digits. Stru
Slide 12: Well on track to meet our profitability guidance
Well on track to meet our profitability guidance 1Q25 (€M) 1Q25/4Q24 1Q25/1Q24 NII 1,216 -1.8%1 -1.3% 13.3% CET1 FL +29bps Fees 344 -0.8% +1.3% QoQ Total costs -758 -2.3% +0.9% Provisions -148 -28.4%2 -29.2% 14.1% Recurrent Net profit 489 -8.1% +58.6% RoTE3 15.0% RoTE reported Note: RoTE assumes the
Slide 13: Financial results
Sabadell Financial results
Slide 14: Solid set of results in the quarter
Solid set of results in the quarter Sabadell ex-TSB Sabadell Group €M 1Q25 1Q25/4Q24 1Q25/1Q24 1Q25 1Q25/4Q24 1Q25/1Q24 Net interest income 904 -3.1% 1 -5.2% 1,216 -1.8% 1 -1.3% Fees & commissions 322 0.2% 3.9% 344 -0.8% 1.3% Core banking revenue 1,226 -5.0% -2.9% 1,560 -3.8% -0.7% Trading income &
Slide 15: Resilient NIM in a lower interest rate environment
Resilient NIM in a lower interest rate environment Group NII Group NII QoQ evolution €M €M 1,231 1,275 1,216 1Q25/4Q241 1,275 278 306 - 1.8 % 1,239 312 1,216 -36 -2 -5 -12 -4 Customer margin -19 1Q25/1Q24 Loan Volumes 953 969 904 +12 - 1.3 % Deposit Volumes +5 FX impact +0 4Q24 1Q25 1Q24 4Q24 1Q25 A
Slide 16: Fee income reflected the absence of success fees but growing on an annual basis
Fee income reflected the absence of success fees booked in 4Q but growing on an annual basis Group fees & commissions €M 340 347 344 1Q25/4Q24 30 25 22 - 0.8 % Slightly decline in fees in the quarter, impacted by 68 67 71 4Q24 success fees and lower day count In the year, ex TSB commissions grew at
Slide 17: Efficiency measures at TSB contain costs below 1% increase YoY
Efficiency measures at TSB contain costs below 1% increase YoY Group costs €M 751 776 758 1Q25/4Q24 126 - 2.3 % Ex-TSB: expenses flattish QoQ as lower 124 114 administrative costs offset personnel cost inflation 194 185 180 TSB: expenses declining QoQ as cost saving came through from efficiency init
Slide 18: Total CoR improving aligned with robust asset quality
Total CoR improving aligned with robust asset quality Group credit provisions Group total provisions 1Q25 breakdown €M 1Q25/4Q241 €M 166 18 - 27.0 % 23 148 33 52 77 14 77 148 -5 20 57 58 1Q25/1Q24 1Q24 4Q24 1Q25 - 53.6 % Credit provisions for Foreclosed asset NPA management Other provisions Total pr
Slide 19: Balance sheet
Sabadell Balance sheet
Slide 20: NPL ratio kept improving while coverage increased
NPL ratio kept improving while coverage increased Group NPLs, and NPL and coverage ratios Exposure by stage and coverage ratio €M, % €M 63% Total provisions 62% over stage 3 59% Stage 2 Stage 3 Mar-25 YoY Mar-25 YoY Exposure (€M) 10,180 -1,647 4,583 -1,135 3.46% % of total loan book 5.9% -122bps 2.7
Slide 21: Net NPAs over total assets already below 1%
Net NPAs over total assets already below 1% Group foreclosed assets Group NPAs Group key ratios €M €M Mar-24 Dec-24 Mar-25 24% 94% Gross NPA ratio1 4.0% 3.3% 3.1% Stock sold Finished L12M +12% properties 59% 59% Net NPA ratio 1.8% 1.4% 1.3% Average 56% Coverage premium ratio Net NPAs / total assets
Slide 22: A solid liquidity profile complemented by progressive strengthening of credit ratings
A solid liquidity profile complemented by progressive strengthening of credit ratings Liquidity metrics Total liquid assets Long-term ratings Sabadell Group €bn Quarterly changes highlighted in blue Mar-25 94% Loan-to-deposit 60 17 65 17 63 18 Long-term credit rating NEW Outlook 8 7 Standard A- 8 St
Slide 23: Ample MREL management buffers
Ample MREL management buffers MREL position, Sabadell Group YTD new issuances % Risk Weighted Assets (RWAs phase-in), % Leverage Ratio Exposure (LRE) Maturity 8.90% Instrument Date Size (€M) Coupon 28.02% (Years) Covered Bonds (TSB) Feb 18th 600 5 2.70% 1.34% Senior Non-Preferred Feb 18th 500 8NC7 3
Slide 24: Generating excess capital above expectations
Generating excess capital above expectations Evolution of capital ratios Shareholder value creation2 MDA buffer 18.42% 441bps +14% 17.60% 17.87% +65bps +3bps +12bps -41bps CET1 -10bps generation 0.23 60% ordinary pay-out 13.30% 13.XX% 13.31% QoQ 13.02% 13.02% +29bps 2.36 2.27 YoY1 Mar-24 Dec-24 Orga
Slide 25: Shareholders remuneration for 2024-25 further improved to €3.4bn
Shareholders remuneration for 2024-25 further improved to €3.4bn Shareholder remuneration expected in 2024 and 2025 €bn €3.4bn Being executed IMPROVED Total shareholder ~25% Market cap.3 Already paid €1.0bn remuneration share buyback 1.3 3.4 2024-25e €1.1bn cash dividend (60% pay-out) 2.1 2025 targe
Slide 26: Closing remarks
Sabadell Closing remarks
Slide 27: 1Q25 results represent a solid start to the year
1Q25 results represent a solid start to the year Loan book and customer funds growing +5.0% +6.3% 1 mid-single digits Loan growth YoY Total customer funds growth YoY 14.1% >14% 2 Sustainable profitability Recurrent RoTE2 RoTE in 2026e 13.3% +29bps 3 Generating capital above expectations CET1 FL1 QoQ
Slide 28: Appendix
Appendix 1 NIM and customer margin 2 Debt maturities 3 ALCO portfolio 4 ESG milestones 5 TSB asset quality, solvency and liquidity position 6 RWAs breakdown 7 MDA buffer
Slide 29: NIM and customer margin
Appendix 1 NIM and customer margin Sabadell Group Sabadell Ex-TSB TSB %, in euros %, in euros %, in euros 3.09% 3.18% 3.11% 3.16% 3.05% 3.32% 3.41% 3.30% 3.31% 3.07% 3.10% 3.18% 2.86% 2.71% 2.08% 2.10% 2.06% 2.06% 2.02% 2.05% 2.06% 2.01% 1.98% 2.55% 2.58% 1.89% 2.44% 2.00% 1.91% 2.29% 2.11% 2.18% 2.
Slide 30: Debt maturities
Appendix 2 Debt maturities 4,837 4,410 3,731 2,815 3,100 2,457 1,819 2025 2026 2027 2028 2029 2030 >2030 Covered bonds 836 1,390 2,297 2,481 2,049 1,850 1,700 Senior Preferred Debt 983 0 500 750 1,289 750 0 Senior Non-Preferred Debt 0 567 18 500 1,500 500 1,195 Subordinated debt 0 500 0 0 0 0 1,515
Slide 31: Debt maturities
Appendix 2 Debt maturities Main debt maturities and redemptions Main debt maturities or calls in next 12 in last 6 months months Istrument Date Nominal amount Istrument Date Nominal amount Senior preferred bonds 17/11/2024 (call) €500M Covered bonds 28/06/2025 €256M Covered bonds 27/12/2024 €250M Co
Slide 32: ALCO portfolio
Appendix 3 ALCO portfolio Evolution of fixed income portfolio Composition of fixed income portfolio Sabadell Group. €bn Sabadell Group. €bn. Mar-25. 12.6% 12.8% 12.1% 31.0 31.9 28.6 17.6 3.8 1.9 4.6 3.3 0.7 6.1 6.1 6.4 Spain Italy UK Agencies & Covered bonds 24.9 25.8 Other governments and Corporate
Slide 33: Main milestones in Sustainability
Appendix 4 Main milestones in Sustainability Sustainable finance solutions E Environmental mobilised Sectoral €bn in cumulative terms since 2021 Sustainable €4.45bn 9 11 sectors intermediate bond issuances Outstanding Issuances targets stablished +1 (TSB Mortgage book) €65bn 2025 Target S Social 63.
Slide 34: TSB asset quality, solvency and liquidity position
Appendix 5 TSB asset quality, solvency and liquidity position Asset quality TSB core mortgage portfolio overview % Mar-24 Dec-24 Mar-25 9% 2% Mortgages NPL ratio 1.5% 1.5% 1.5% 5% 84% > 90 % Coverage ratio 40% 34% 35% 9% Total loan 1 (YTD) book Cost of risk 0.17% 0.08% 0.18% Liquidity £33.6bn Reside
Slide 35: RWAs breakdown
Appendix 6 RWAs breakdown Mar-25 RWAs By type: By geography: €80,068M Credit risk Spain €67.6bn €62.2bn Market risk €0.4bn UK €13.8bn Operational risk €11.9bn Mexico Others €4.1bn €0.2bn 35
Slide 36: MDA buffer
Appendix 7 MDA buffer Group capital requirements Group capital position (phase-in) Leverage Pillar 1 CET1 4.50% MDA buffer ratio pase-in Pillar 2 CET1 Requirement (P2R) 1.27%1 441bps 4.9 % Capital Conservation Buffer 2.50% Countercyclical Buffer 0.44% • MDA stands at 441bps, above 8.95% Other System
Slide 37: Glossary
Glossary CET1 FL Common Equity Tier 1 Fully Loaded NIM Net Interest Margin CoR Cost of Risk NPA Non-Performing Asset CRR2 and CRR3 Capital Requirements Regulation 2 and 3 NPL Non-Performing Loan HQLA High Quality Liquid Asset NSFR Net Stable Funding Ratio: medium-term liquidity ratio LCR Liquidity C
Slide 38: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared and is issued by, reports and documents, including those filed with the Spanish Securities and (https://www.grupbancsabadell.com/corp/en/shareholders-and- and is the sole responsibility of, Banco de Sabadell, S.A. ("Banco Sabadell"
Slide 39: ©Sabadell
©Sabadell
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